Craftsman Automation Reports ₹1,293 Crore Profit in Q3 FY25, Expands Global Footprint with Acquisitions

Coimbatore, India – January 29, 2025 – Craftsman Automation Limited (NSE: CRAFTSMAN, BSE: 543276) has reported a strong financial performance for Q3 FY25, with a consolidated net profit of ₹1,293 crore, despite increased operational expenses. The company also expanded its global presence with strategic acquisitions in Germany and India, reinforcing its leadership in the powertrain, aluminum products, and industrial engineering segments.

Financial Performance: Q3 FY25​

Consolidated Financial Performance (₹ in Lakhs)​

• Revenue from Operations: ₹1,57,609 lakh (up 39.5% YoY) from ₹1,12,970 lakh in Q3 FY24.
• Total Income: ₹1,58,465 lakh (up 39.8% YoY).
• Operating Profit (EBITDA): ₹10,348 lakh (up 47.3% YoY).
• Net Profit: ₹1,293 lakh (down 84.1% YoY) from ₹8,147 lakh in Q3 FY24 due to higher depreciation and financial costs related to acquisitions.
• Earnings Per Share (EPS): ₹5.42 per share, compared to ₹34.61 in Q3 FY24.

For the nine months ending December 31, 2024:

• Revenue from Operations: ₹3,94,123 lakh (up 17.8% YoY from ₹3,34,639 lakh).
• Net Profit: ₹13,411 lakh (down 49.7% YoY from ₹26,680 lakh).
• EPS: ₹55.44, compared to ₹114.60 in the same period last year.

Standalone Financial Performance (₹ in Lakhs)​

• Revenue from Operations: ₹92,892 lakh (up 15.4% YoY from ₹80,517 lakh).
• Net Profit: ₹529 lakh (down 88.3% YoY from ₹4,533 lakh).
• EPS: ₹2.22 per share, compared to ₹21.45 in Q3 FY24.

Business Segment Performance​

Powertrain​

• Revenue: ₹43,732 lakh (up 11.4% YoY).
• Segment Profit: ₹5,013 lakh (down 29.7% YoY).

Aluminum Products​

• Revenue: ₹91,637 lakh (up 68.4% YoY).
• Segment Profit: ₹7,171 lakh (down 10.4% YoY).

Industrial & Engineering​

• Revenue: ₹20,220 lakh (up 4.8% YoY).
• Segment Profit: ₹29 lakh (down 97.8% YoY).

Despite higher revenues across segments, the profitability decline was mainly due to acquisition-related costs and increased depreciation expenses.

Strategic Expansions and Acquisitions​

Craftsman Automation expanded its global footprint with several strategic acquisitions:

1. Germany Expansion:
   • Acquired Craftsman Germany GmbH and Craftsman Fronberg Guss GmbH on July 22, 2024.
   • Invested EUR 16.44 million (₹15,368 lakh) for asset acquisition and working capital.
2. Indian Acquisitions:
   • Acquired Sunbeam Lightweighting Solutions Private Limited (SLSPL) on October 9, 2024.
   • Invested ₹37,600 lakh, making it a wholly owned subsidiary.
3. DR Axion India Private Limited:
   • Increased stake from 76% to 100% during Q2 FY25 with an investment of ₹15,000 lakh.

The acquisitions will strengthen Craftsman’s leadership in precision engineering and high-value manufacturing.

Financial and Market Outlook​

• Debt Repayment Strategy: ₹1,000 crore raised through Qualified Institutional Placement (QIP) to repay loans and fund acquisitions.
• Improved Long-Term Prospects: Expansion in Europe and India positions the company for strong future revenue growth.
• Short-Term Margin Impact: Higher finance and depreciation costs may continue impacting profits in upcoming quarters.

Investor Takeaways​

• Revenue growth of 39.5% YoY, driven by strong segment performance.
• EPS declines due to acquisition costs and higher depreciation.
• Strategic global expansion to drive long-term profitability.
• Debt reduction efforts to improve financial stability.

Conclusion​

Craftsman Automation’s Q3 FY25 results reflect a strong revenue growth trajectory despite short-term profitability challenges. With major acquisitions in Germany and India, the company is poised for long-term global precision manufacturing industry expansion.
Investors can expect improved profitability in the coming quarters as the company integrates new acquisitions and optimizes costs.